Here is how much Indians are paying for petrol and diesel now post the Rs 2 cut last week

Petrol and diesel prices are the highest in Andhra Pradesh, Telangana, and Kerala, while they are the lowest in Andaman & Nicobar Islands, Delhi, and the North East, due to varying local sales tax or VAT rates, according to oil industry data.

Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) recently reduced petrol and diesel prices by Rs 2 per liter, marking the end of nearly two years without a price revision.

Despite the reduction, fuel prices remain above Rs 100 per liter in some states due to higher Value Added Tax (VAT) rates. In Andhra Pradesh, petrol is the most expensive at Rs 109.87 per liter, followed by Kerala at Rs 107.54 per liter. Telangana, governed by the Congress party, is close behind with petrol priced at Rs 107.39 per liter.

States governed by the BJP also have relatively high petrol prices, with rates ranging from Rs 106.45 per liter in Bhopal to Rs 104.19 per liter in Mumbai. The cheapest petrol can be found in Andaman & Nicobar Islands at Rs 82 per liter, followed by Silvassa and Daman at Rs 92.38-92.49 per liter.

Diesel prices follow a similar trend, with the highest prices in Andhra Pradesh and Kerala, and the lowest in Andaman & Nicobar Islands. Delhi, with the lowest VAT among metro cities, has diesel priced at Rs 87.66 per liter.

Goldman Sachs and Morgan Stanley both commented on the recent price cut, with Goldman Sachs predicting a decline in net marketing margins for oil companies and Morgan Stanley stating that the price cut should remove a key overhang for fuel retailers.

Emkay Global Financial Services noted that the price cut translates to a reduction in gross marketing margins and expects a return to a normalized margin scenario after the national elections.